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Wednesday, 5 September 2018

Big losses reported by flydubai

United Arab Emirates low-cost airline flydubai is due to take 7 more Boeing 737s during the last part of this year, which will include its first Max 9 models.

FlyDubai is returning four 737-800s to their leasing firms as it welcomes three take 737 Max 9s and four 737 Max 8s. The airline will “maintain a tight grip” on capacity deployment, in the face of rising fuel prices, as part of its efforts to cut costs and keep spending under control. Senior vice-president of finance Arbind Kumar said Flydubai has achieved “good” revenue growth and that it remains focused on the priorities of improving cost performance, optimising the network, and broadening distribution.

The airline has reported its latest results today, some of the key points include:

Total revenue increased to AED 2.8 billion (USD 761 million) for the six-month period; an increase of 10.4% compared to the same period last yearRPKM[1] grew by 6.5% compared to the same period in the first half of last yearReports loss of AED 316.8 million (USD 86.3 million) for the period ending 30 June 2018A price impact of AED 175 million due to a 35% increase in the Average Brent Crude Oil prices compared to the same period last yearPassenger numbers remained steady at 5.4 million during the first six months of the reporting periodDuring the first six months of 2018, flydubai contributed 12.3% of all traffic in DubaiContinues to invest for the long-term in the fleet, unique new routes across the network and airline’s infrastructure aligned to strategic objectives

Rising fuel costs have had a major impact on the airline, increasing operating costs as the average Brent crude oil prices had risen by around 35%.

Ghaith Al Ghaith, Chief Executive Officer at flydubai, said: “in its first nine years of operation much has been achieved to firmly establish flydubai as an intrinsic part of the aviation industry. We have continued to see a tough trading environment and the Half-Year Results reflect these short-term challenges. We continue, however, to invest in our fleet, network and operations recognising opportunity as we look to the future.”

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Jason Shaw.

Jason Shaw's love of the aviation industry started at a young age when he used to watch the whirlybirds of Bristow Helicopters coming and going from the garden of his Surrey childhood home. Since those days he's worked in a number of key areas within the aviation industry from airlines, travel agents, holiday companies and product selection to reporting on it for local radio and making video travel brochures.

Jason is also an experienced broadcaster, having presented on radio, television, corporate videos and video travel brochures. He's an avid writer and written a number of books, articles, features and reports. He also loves to travel and his favourite destinations include Port Douglas, Singapore and Copenhagen.

Joshua Jordan.

Josh loves to travel and has a passionate interest in the airline industry. He's worked in both travel and the media for a number of years. His voice can often be heard on Internet-based radio stations as well and the odd commercial! The destination he calls his favourite is - New York.

Adam Shaw

Adam is the youngest member of the team, no relation to Jason and like the rest of the team, he has a keen interest in airlines, aircraft and aviation. His favourite destination is Prague and has just started taking flying lessons.